Company Overview
TOYO Co., Ltd. engages in the comprehensive upstream production of wafers and silicon, as well as midstream production of solar cells and downstream production of photovoltaic modules, operating across other stages of the solar power supply chain in Asia and the United States. This operational scope places the company firmly within the Technology sector, specifically targeting the Solar industry where it functions as a critical manufacturer in the global renewable energy infrastructure. The entity maintains a substantial operational footprint employing 528 individuals to support its manufacturing and distribution activities. With a total market capitalization of $320.32M and annual revenue reaching $177.98M, the company operates as a mid-sized player in the solar manufacturing landscape. These valuation figures indicate that the market assigns a significant asset base to the firm's production capabilities, reflecting its established presence in the supply chain despite the competitive nature of the technology sector.
Financial Health
The company reported revenue of $177.98M over the trailing twelve months, generating net income of $17.33M and EBITDA of $19.98M during the same period. The gap between the $177.98M in revenue and the $17.33M in net income reveals a cost structure where operating expenses, likely including manufacturing overhead and research costs, consume a substantial portion of top-line earnings. Free cash flow stands at -$1,036,766, which indicates that the company is currently burning cash rather than generating surplus liquidity from its operations. This negative free cash flow suggests limited financial flexibility for immediate capital expenditures or debt repayment without accessing external financing. The company's profitability margins show a gross margin of 10.3%, an operating margin of 7.0%, and a profit margin of 13.7%. The wide disparity between the gross margin of 10.3% and the profit margin of 13.7% highlights the impact of non-operating income or specific accounting adjustments that boost the bottom line relative to operating performance. Regarding liquidity and leverage, the firm holds $28.19M in cash against total debt of $149.35M, resulting in a debt-to-equity ratio of 212.62. This high debt-to-equity ratio signifies that the balance sheet is heavily leveraged, meaning the company relies significantly on borrowed funds relative to shareholder equity. Furthermore, the current ratio is 0.47, which indicates that the company's short-term assets are insufficient to cover its short-term liabilities, pointing to potential liquidity constraints in meeting immediate obligations. Return on Equity is reported at 32.7% while Return on Assets is -0.8%, revealing that management is generating high returns on the specific equity invested but failing to generate returns on the total asset base due to the negative impact of interest expenses or asset inefficiencies captured in the ROA metric.
Valuation Assessment
The trailing P/E ratio is 11.31, while the forward P/E ratio is N/A, implying that analysts cannot currently project a future earnings trajectory based on forward multiples. The price-to-book ratio stands at 4.47, indicating that the market values the company at a significant premium over its tangible book value. This premium suggests that investors are pricing in intangible assets, growth potential, or specific strategic advantages within the solar supply chain that exceed the value of the company's physical assets. The price-to-sales ratio is 1.80 and the EV/EBITDA ratio is 21.22, which suggests that the company is trading at a valuation multiple that is elevated relative to its revenue and earnings before interest, taxes, depreciation, and amortization. The stock has traded between a 52-week high of $10.21 and a 52-week low of $2.57. Without the current share price explicitly listed in the provided facts, the relative trading position cannot be calculated as a percentage of the 52-week range, but the wide range between $10.21 and $2.57 demonstrates significant price volatility over the last year. The beta value is 0.79, which means the stock exhibits lower volatility relative to the broader market, moving less than the market average during periods of general equity market fluctuation. This lower beta suggests that the stock may offer a different risk profile compared to larger-cap technology or solar peers that typically track more closely with overall market movements.
Growth & Income
Revenue growth year-over-year is 0.7% while earnings growth year-over-year is -78.6%, indicating that earnings are shrinking significantly faster than revenue is expanding. This divergence implies that the company is facing intense pressure on its bottom line, potentially due to rising input costs, margin compression, or one-time charges that are not reflected in the top-line revenue growth. The company does not pay dividends, as evidenced by a dividend yield of N/A and a payout ratio of 0.0%. Since there is no dividend payout, the company effectively reinvests all of its earnings back into operations, research, or debt management rather than distributing cash to shareholders. The overall growth and income profile is characterized by stagnating revenue expansion and a severe contraction in profitability, with no income support from dividends for investors seeking yield.